Sundaram Alternates Credit Fund announces first close at ₹1,000 cr

The fundraise remains open and is expected to conclude by March 2026, with a targeted final corpus of ₹1,500-2,000 crore

Sundaram Alternates (SA), the alternative investment arm of the Sundaram Finance Group, has announced the first close of its SA Real Estate Credit Fund V, India’s first ESG-aligned real estate credit fund, at ₹1,000 crore in capital commitments within three months of its launch in October 2025.

 

The fundraise remains open and is expected to conclude by March 2026, with a targeted final corpus of Rs 1,500-2,000 crore. The fund has secured commitments from insurance companies, family offices, corporate treasuries, and ultra-high-net-worth investors, and a sponsor commitment from the Sundaram Finance Group.

 

Karthik Athreya, managing director, Sundaram Alternates, said, “Crossing ₹1,000 crore within three months reflects the confidence that investors place in our underwriting discipline and risk framework. This momentum reflects nearly a decade of sustained effort in building a robust risk management platform for our credit business. As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships.”

 

 

The fund’s credit strategy is focused on senior secured, amortising lending to brownfield, cash-generating residential projects. “The approach prioritises capital protection and downside risk management through conservative loan-to-value structures and collateral coverage. ESG considerations are embedded into the underwriting and portfolio monitoring process,” the fund noted.

 

The fund believes that investor confidence in ESG-integrated private credit continues to rise as the sector emerges as a meaningful solution to India’s real estate financing needs, as the real estate sector is projected to reach $1 trillion by 2030 and contribute 13 per cent to gross domestic product.

 

Sundaram Alternates has raised over ₹3,800 crore across five real estate credit funds, delivering an internal rate of return (IRR) in the range of 18-19 per cent. The five funds have deployed ₹4,140 crore across 73 deals with an average contracted IRR of 19.1 per cent and have exited 34 deals of ₹1,829 crore with an average exit IRR of 20.4 per cent.